MUMBAI: Concerned over the rising prices of steel and rupee appreciation, engineering exporters' apex body EEPC India has approached the Commerce Ministry seeking its intervention to curb such volatility which is adversely impacting the sector.
"We have approached the Commerce Ministry, stating that a sharp rise of over five per cent in rupee against the US dollar along with increase in prices of steel, is acting as a double whammy for engineering exporters in a highly competitive global market," EEPC India Executive Director and Secretary B Sarkar said in a letter to Commerce Secretary Rita Teaotia.
EEPC said the Indian currency has appreciated against the US dollar by 5.26 per cent from Rs 68.0225 on January 02 to Rs 64.4418 on April 10.
"We have sought urgent attention of the government on these two issues to curb volatility in the rate of foreign exchange as well as raw materials prices, as these developments are making it extremely difficult for exporters to face international competition more so when the global conditions are one of protectionism and competing countries," he said.
Sarkar said the sharp appreciation has come together with an increase in Indian steel prices from $ 582 per ton in September 2016 to $ 712 per ton in March 2017 implying an increase of nearly 22.5 per cent within a span of six months.
He also urged that engineering exporters should be provided steel at the export prices of domestic steel companies.
Source: economictimes.indiatimes.com